When examined demographically and by region, online cross-border sellers are a diverse crowd with older cohorts showing more selling savvy than younger generations, according to the latest quarterly Global Seller Index report from Payoneer.
The report is based on a sample of over 100,000 merchants actively selling on international marketplaces. Results are tracked against previous quarters, highlighting trends and shifts in seller location, age and sales.
As a global payment solution provider, Payoneer helps facilitate cross-border commerce for e-commerce sellers. Just this February, Payoneer launched its capital advance service to support sellers seeking to expand their business without limits of traditional bank loans.
India, U.K. Claiming Stake in International Markets
According to Eyal Moldovan, general manager at Payoneer, the latest first-quarter report can serve as a “reference point for achieving your selling goals and expansion plans.” In its first-quarter report, India, Japan and the U.K. are exhibiting growth across categories, although China still claims a “clear majority of Q1 sales.” The countries’ performances are evaluated in terms of sales on international marketplaces. Most notable, sellers in India are exhibiting rapid growth, carving out market share in the leading global e-commerce marketplaces, with sales up 121 percent year-over-year for India, and 148 percent for the U.K. While the U.K. has a strong domestic market typically, the post-Brexit attitude may be fast-tracking overstepped boundaries, by way of participating in global markets (Europe, North America, etc.).
Young and Hungry Sellers Lack Experience
While Amazon remains the most popular marketplace for new merchants, Payoneer saw a “remarkable 38 percent year-over-year increase in sellers working on more than one marketplace.” Half of all sellers are Millennials (aged 25 to 34), assuming the majority of sales on international marketplaces, or 46 percent of total sales. The data aligns with previous quarterly reports, but Payoneer cited an overall increase in the number of merchants and sales.
Although younger sellers are entering the international selling landscape fast and easily, with limited barriers to entry, their comparative growth rate of sales lag behind that of older demographics. The 55-plus age group shows fewer new recruits, but for those already developing their businesses, sales are increasing more rapidly. Perhaps due to more experience and expertise, sales growth from the first quarter of 2018 to the first quarter of 2019 was 54 percent for the 55-and-over age group.
Older age groups brought in larger sales relative to their representation in the overall seller population, as cited in the report. “The barriers to entry are relatively low, empowering a new generation with the tools to enter today’s world of commerce. While the more experienced players may currently be outperforming their younger counterparts, we have no doubt that with Millennials flocking to the marketplaces, it won’t be long before they catch up,” said Jonny Steel, vice president of marketing at Payoneer.
“Selling online internationally is not just a young person’s game,” and the growth of market share, such as is the case of India and U.K., on international marketplaces is of interest to those dueling it out online.